Wednesday 7th December 2016

(7 years, 4 months ago)

Westminster Hall
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Chris Davies Portrait Chris Davies
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I represent a rural seat, so I am looking from the perspective of the rural economy—and, indeed, of how trees enhance rurality—but I fully agree with my hon. Friend. I chose my little shoebox of a flat in London because it is close to an open square, so that I look out over a little patch of green grass and trees, which reminds me of home. My hon. Friend makes an important point: that certainly puts a spring in my step as I come into this great place every morning.

There are many reasons to plant trees, not least the wishes of our constituents, so I now come to the second question that I asked. Are we planting enough trees in the UK? The answer, as people will not be surprised to learn, sadly, is no. Planting rates in England are at a modern low and have been described as woeful.

The forestry industry in the UK supports at least 79,000 low-carbon jobs and is worth nearly £2 billion annually to our economy. Industry body Confor, the Confederation of Forest Industries, believes that such figures could be significant underestimates. Most available statistics from our countries are out of date, although a recent study in Scotland pointed the way, showing that the sector there had grown by 50% between 2008 and 2014, during challenging economic times in the UK. Well done to Scotland!

In the UK as a whole, we are benefiting from relatively high levels of tree planting in the decades after the end of the second world war. Trees planted in the 1970s and ’80s are now available for harvesting, which is contributing directly to a boom in the forestry and wood-processing industries. Unfortunately, new planting rates in the UK fell dramatically at the end of the 1980s. There has been an increase in Scotland in recent years, but other countries of the UK have largely followed a downward trend.

Organisations such as Confor and the Woodland Trust have been warning about this downturn in planting and the effect that it will have over a number of years. The language used has, perhaps understandably, become more and more extreme. Confor highlights the threat to future supplies of wood to support businesses in the UK, while the Woodland Trust has wondered whether England has experienced annual deforestation in recent years. The situation is simply not acceptable.

I come to my final point, which is a simple question: how can the UK change our approach to tree planting and ensure that we plant more trees? There is some good news—and it is back to Scotland. My colleagues from Scotland will no doubt talk about it in more detail; several of them have put in to speak. It looks as though the Scottish Government, not Wales, Northern Ireland or Westminster, are leading the way. They have the most ambitious targets among the home nations and are taking steps to speed up their processes for approving larger planting schemes.

The application process that farmers and landowners are required to go through to access funding for planting is complex and costly. It can and does put people off. When public money is involved, it is right and proper that comprehensive safeguards are in place to ensure value for money and that high standards are followed, particularly for forestry. However, the relevant bodies across the UK should be able to approve larger schemes that fully meet UK forestry standard requirements within six months in most cases and a year in all cases, not the current two years-plus. That would provide reassurance to farmers and landowners that their applications will not get bogged down with continually rising costs.

We all know that the UK will have to look again at support for the countryside after the country leaves the European Union. We do not yet know what the level of support will be or what it will look like. That will be determined by not just the Department for Environment, Food and Rural Affairs, but the devolved Administrations in Wales, Northern Ireland and Scotland. We surely must grasp the opportunity in front of us to ensure that forestry has parity of esteem with farming and fisheries as post-Brexit countryside policy develops.

For too long, forestry has been the forgotten F-word in rural policy and a poor relation in land use policy discussions. If we grow and process more of the wood we need in the UK, jobs will stay in this country, rather than being exported overseas. Using wood grown in Britain is clearly a priority for this Government, and I firmly support that. Leaving the EU means that we can look again at public procurement rules. States in countries such as Canada and Australia have timber-first public procurement policies. Using more sustainable UK-grown timber will stimulate business growth and ensure that more of our woodlands are well managed.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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I congratulate the hon. Gentleman on securing the debate, and I apologise for missing the very start. He was good enough earlier to touch on the fact that Scotland leads the way on forestry planting. On the use of wood in the UK, does he agree that the UK Government should look at more timber-frame house construction? Again, Scotland leads the way on that. Three out of four houses being built in Scotland use timber-frame construction, whereas in the rest of England and Wales it is something like 15%.

Chris Davies Portrait Chris Davies
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The hon. Gentleman takes advantage of my praise for Scotland, but I certainly agree with him on that matter, which I am sure the Minister will elaborate on.

The Chancellor’s autumn statement made clear the need for new homes across the UK. Using timber means that houses can be built to a high standard, more quickly and with less energy in construction, and it saves money over the lifetime of the property. The UK sawmilling sector, which is a large employer in my constituency, and the wood panelling sector process nearly all the 11 million tonnes of UK-grown timber that is harvested annually.

The sawmilling sector has invested £100 million in UK plants every year since the recession. UK timber has a wide variety of domestic and construction uses—it is used in building our homes, for decking, fencing and pallets for industry, and much more. Mills such as BSW in my constituency and around the country are among the most modern and efficient in Europe. We have much to be proud of. I look forward to hearing the views of other Members from around the country, because we all have an interest in forestry and planting trees.

My view might be best summarised by an adaptation of the famous 18th-century Dunning’s motion, which was passed by the House of Commons: tree planting in the UK has decreased, is decreasing and ought to be increasing. I urge Members to support that approach. I hope that all political parties and devolved Governments across the UK will work together to address the long-term decline in tree planting.

--- Later in debate ---
Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
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It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate the hon. Member for Brecon and Radnorshire (Chris Davies) on securing such an important debate and delivering such a fine speech, full of detail about the works of the Scottish Government and how well we are doing. It is very much appreciated. He mentioned his constituency interest in the forestry and timber industries, and I have a similar interest. Forestry and timber have deep roots in my constituency. Indeed, the tree family is part of our family tree there. [Interruption.] It gets worse—but I do want to change tack and be serious, because the industry is an important part of the economy; and the family aspect is important, because there is great potential for our young people when they are building careers.

When we grow trees in my constituency, we grow careers for people who want a rewarding job. I am keen for girls and young women in particular to take up the opportunities. We take forestry seriously—not least because I share my constituency area with the Forestry Minister in the Scottish Government, Fergus Ewing. However, forestry is also seen as a major developing industry in the highlands. That growth and development can happen only if we have a responsible commitment to sustainability. The Scottish Government see great potential in forestry, and consider it an excellent area in which to get young people involved; but it must be supported and developed, and I know that they are committed to taking their good work to greater heights.

The headquarters of Forest Enterprise Scotland is in my constituency, in Inverness. It is responsible for managing Scotland’s national forest estate and contributes to what I would call the local five-a-day of our economy—health, wellbeing, education, community development and protecting our natural and cultural heritage. Its work has the potential to benefit not only my constituents but all the people in Scotland, and beyond.

The Scottish School of Forestry, Inverness College, University of the Highlands and Islands, is the principal institution for forestry training and education in Scotland. We have a good reputation locally for providing successful forest managers in both the public and private sectors of the industry. The school acquired its sites from the Forestry Commission in 1972 and sits in its own 10-hectare woodland. It is the only forestry training provider to deliver higher and further education in its own practical training environment.

Among the area’s timber industries is Gordon Timber, in Nairn, which was founded in 1862. Since the late 1880s it has been managed by four generations of the same family, and is now recognised as one of the top sawmilling companies in the UK. The BSW Timber sawmill in Boat of Garten is a major employer in the area, and our plant contributes significantly to the local economy. BSW Timber was founded in 1848 and is the UK’s biggest sawmiller. It employs more than 1,000 people across seven locations, four of which are in Scotland.

Norbord, in Inverness, was the first manufacturer of oriented strand board in Europe. It was also the first OSB plant in Europe to receive Forest Stewardship Council accreditation, demonstrating commitment to the environment. Production at Inverness and Genk combines to make Norbord one of the largest OSB producers in Europe. Earlier this year, the Canadian company Norbord announced that it plans to invest up to £95 million in its wood panel factory near Inverness.

The final business I want to mention is MAKAR at Loch Ness, which has established a progressive timber-based design and build system that is rooted in the resources of Scotland. It has honed its knowledge of modern construction methods to get the optimum performance from home-grown timber. Not only does that reduce the carbon footprint of MAKAR’s buildings; it stimulates a regional industry that feeds investment into the economy. It is important that we support tree planting in Scotland, and note the wise words of the hon. Member for Brecon and Radnorshire about investing in the future.

Forestry is a devolved matter within the UK, and Scottish Ministers already direct domestic Scottish forest policy. However, domestic forestry is heavily influenced by EU policies and regulations, and co-financed funding is received for Scotland’s rural development programme. The Scottish National party in government has created the most ambitious planting target in the UK. England and Wales have annual targets of 5,000 hectares and 1,000 hectares respectively. Our target is 10,000 hectares. Scotland created 83% of all new woodland in the UK in 2015-16, so there is considerable development in tree planting in Scotland.

A recent report for the Forestry Commission assessed the potential role of UK forestry in combating climate change. Forestry Commission Scotland recently published its climate change action plan, setting out the action it intends to take to increase the contribution of Scottish forestry to the response to the challenges of climate change. The plan focuses on five key areas: protecting and managing existing forests; woodland creation, including energy crops; adapting to climate change, with a major focus on countering fragmentation through forest habitat networks; sustainably produced wood for energy and construction; and reducing the forestry sector’s carbon footprint, for example through improved timber transport infrastructure. Planning authorities should therefore consider the contribution that trees, woodland and forestry can make to local strategies in their efforts to adapt to climate change.

Alan Brown Portrait Alan Brown
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My hon. Friend has talked about climate change and sustainability, which is what tree planting is all about. Is it not crazy that the Government currently provide renewable subsidies for biomass energy, which is completely contradictory to sustainability and tackling climate change?

Drew Hendry Portrait Drew Hendry
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My hon. Friend makes the point clearly. I certainly agree that there is a nonsensical approach to renewable energy policy in the UK at the moment, which should be reviewed.

I want to go on to the issues facing the forestry sector. Given that the Scottish forestry sector receives vital support from the EU, the Scottish Government are focused on continuing investment in the sector to ensure economic growth, so that the reckless gamble of Brexit does not impact on that vital Scottish industry. The Scottish rural development programme, which is funded via the EU, provides vital support for the Scottish forestry sector and rural communities.

One of the main threats of Brexit is to confidence in the sector and to levels of woodland creation, and the long-term impact that will have on timber supplies to the domestic processing sector. New planting by the private sector is particularly sensitive to confidence about the availability of SRDP grant support in one to two years’ time and wider uncertainty in investment and land markets. I would like to hear reassurance from the Minister that the UK Government are taking steps regarding the future availability of forestry grants and that mitigation will be provided on that issue.

It is of extreme importance to reassure investors that Scotland is open for business, in both planting and investment in the processing sector. Timber processing has expanded significantly in the past 10 years. The Scottish Government have held two summits with the forestry sector to listen to its concerns and ambitions for the future of forestry in Scotland. EU referendum issues were discussed indirectly, with regard to securing future funding for woodland creation grants; even there, the EU is important.

Our Rural Economy Minister, Fergus Ewing, has met with leading representatives of forestry management and investment companies to provide reassurance that the Scottish Government are committed to seeing the forestry sector thrive. Currently, the forestry sector enjoys zero or low tariffs on trade within the EU, so it is vital that there is a level playing field with other parts of the European Union. Support industries, such as forest nurseries, are very sensitive to sudden dips in demand, and even a short-term fall in planting could put some Scottish nurseries at risk.

As I said, the SNP has created the most ambitious planting target in the UK, at 10,000 hectares a year, and Scotland created 83% of all new woodland in the UK in 2015-16. Since the forestry grant scheme opened in April 2015, more than 1,000 applications, worth £45 million, have been submitted, including for more than 8,500 hectares of woodland creation. Of that, 4,300 hectares of woodland creation, with a value of around £23 million, has been approved.

This issue is very important. I am grateful to the hon. Member for Brecon and Radnorshire for securing the debate and allowing it to be discussed. We are approaching Christmas, and it is important to end on the right tone. Christmas trees are an important seasonal part of Scotland’s rural economy. Scotland’s forests provide homes for wildlife, as my hon. Friend the Member for Angus (Mike Weir) mentioned, as well as places for recreation, and they help to reduce the impact of climate change and flooding.

To underline the importance of the industry, the First Minister has encouraged people to support Scotland’s rural economy this Christmas by buying home-grown Christmas trees. Two Norway spruce trees, grown by Highfield Forestry in Beauly—right on the edge of my constituency, in an area I used to cover as a local councillor—were delivered to the First Minister’s official residence, Bute House. Let us hope that tree planting and the timber industry in Scotland and the UK have a very happy new year. We wait to hear the answers on how that will be delivered.